Supply-oriented companies are reluctant to transfer
technology in order to protect their interests

One of the major conclusions of the study1 is that in spite of a
long history of foreign investments, Liberians, in general, still lack the basic skills and experience to
satisfactorily perform the management and technical duties which expatriate
managers, mining engineers and other technicians, administrators and bookkeepers
hold in foreign companies operating in the country.2 The multinational corporations could have contributed
more substantially to the growth and development of the Liberian economy than
they actually did.

The disappointing results of the transfer of technology teach us that guest
companies will collaborate with the host country for the establishment of
vocational training centers. They will also finance fellowships abroad or other
activities, which are in the interest of the company involved since these may
eventually reduce local costs. However, these companies are reluctant to collaborate
in cases where their immediate interests are at stake. In general, their
investments are supply oriented. This means that the produce is meant for
overseas markets where it is processed and used as an input to manufacture final
products.3 As we have seen in the
past, the nature of these investments made some control over the nationís
natural resources imperative. A clear example of this conclusion is provided by
Firestoneís investment and financial policies in Liberia.

In protecting their commercial and financial interests, the foreign investors
found important allies within the governing elite of the country. Both groups
feared the majority of the Liberian people which could reduce or even eliminate
the privileges they both enjoyed in case they would come in control of the political system.
Despite their common interests a potential controversy existed between the
foreign investors and the ruling minority of Liberia since the
former also rejected the idea of being controlled by Americo-Liberians while
exploiting the countryís natural resources. The latter had no choice but to
accept the economic domination of foreign capital and manpower if they wanted to
survive politically in a country where the tribal population outnumbered them
more than fifty times.

1)'The Open Door Policy of Liberia - An Economic History of Modern
Liberia' by Dr. Fred P.M. van der Kraaij (Bremen, 1983)

2)
Whereas this was written in 1983, it may still hold true in the early
2000s. It is very likely that the number of trained Liberians has
considerably increased since the early 1980s, but many of them fled the
country during the 14-year civil war and settled elsewhere, in
particular in the USA.

3) Examples are the rubber produced by Firestone and
Goodridge and the iron ore exported by LMC, the LAMCO JV and Bong Mines.